SCA Licensing requirements
The Broker Members intending to carry out trades on behalf of their Clients have to obtain the regulatory license granted by the Securities and Commodities Authority (SCA). Such Broker Members are required to apply for a regulatory license from SCA and fulfill additional criteria as stipulated under SCA Decision No.157/R of 2005 and SCA Administrative Decision No. 123 /R.T. of 2017.
DGCX Group Compliance will assist the Broker Members in the process of applying for the SCA regulatory license.
A duly filed application form along with the requisite documents should be submitted to SCA using the SCA portal: https://scacore.sca.ae/sca/#/login.SCA REGULATIONS 157R of 2005 (PDF)
Minimum Staff Requirements
On 5 December 2017, SCA issued a decision that sets out the Fit & Proper and Outsourcing required by all Broker Members, Administrative Decision No. (123/R.T.) of 2017 concerning regulatory controls for financial activities and services.
This Decision provides information on minimum staff requirements for Broker Members, minimum qualifications and experience of the key employees, and controls related to Outsourcing and Separation Controls of Financial Activities.
DGCX Group Compliance will assist the Broker Members, at the time of applying for the SCA regulatory license, to fully understand the requirements stipulated under the Administrative Decision. The Decision 123/R.T. of 2017 has to be read in conjunction with SCA’s Decision No. 157 R of 2005.
Relevant Regulations and Decisions (Non-exhaustive list):
- Decision No. (157\R) of 2005 Concerning the Regulations as to Listing and Trading of Commodities and Commodities Contracts.
- SCA Board Decision No. (11) of 2015 Regulations of Clearing Operations in Commodities Markets.
- Administrative Decision No. (123 /R.T.) of 2017 Concerning the Regulatory Controls for Financial Activities and Services.
- Decree Federal Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations.
- The SCA Board Chairman’s Decision No. (21/Chairman) of 2019 procedures of Anti-money Laundering and Combating the Financing of Terrorism and illegal Organizations.
- Cabinet Decision No. (10) of 2019 Concerning the Implementing Regulation of Decree Law No. (20) of 2018 on Anti- Money Laundering and Combating the Financing of Terrorism and Illegal Organizations.
- Cabinet Resolution No. 74 for 2020 concerning the UAE list of terrorists and implementation of UN Security Council decisions relating to preventing and countering financing terrorism and leveraging non-proliferation of weapons of mass destruction, and the relevant resolutions.
- The Authority's Chairman of the Board of Directors Decision No. (21/R.M) of 2020 Concerning of the Common Reporting Standard.
- Guidance Notes on the Requirements of Intergovernmental Agreement between The United Arab Emirates and The United States (UAE FATCA Guidelines Notes) published 06 July 2015 by UAE Ministry of Finance.
- New Requirements: FATCA TIN Validations for Reporting Periods 2017 – 2019. Administrative Decision No. (46 / R.T) of 2016 concerning the Regulation for Grievances against Decisions Relating to Capital Markets Transactions
DGCX Group Compliance Guidance
The purpose of Compliance Guidance is to assist Members of DGCX and DCCC to comply with relevant DGCX By-Laws and DCCC Clearing Rules.
This document is for guidance purposed only and is not considered as a replacement to DGCX By-Laws, DCCC Clearing Rules, SCA decisions and circulations, Central Bank of UAE decisions and circulations, and DGCX Group Notices or a replacement to any other rules, regulations, circulations and notices that are issued by DGCX Group or any relevant regulators and authorities.Compliance Guidance
Securities & Commodities Authority (SCA) - Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, Guidelines for Financial Institutions
The purpose of these Guidelines is to provide guidance and assistance to the financial institutions, in order to assist their better understanding and effective performance of their statutory obligations under the legal and regulatory framework in force in the United Arab Emirates in the matters related to identifying, assessing and mitigating the risks of money-laundering, the financing of terrorism, and the financing of illegal organisations.AML Guidance from SCA